Marshalls plc (LSE:MSLH) delivered a resilient performance during the first half of 2026 despite challenging conditions across UK construction markets. Revenue was broadly unchanged at £317.8 million, while adjusted operating profit increased 8.1% to £30.7 million and adjusted earnings per share rose 14.4% to 7.6 pence.
The group also maintained a strong focus on cash generation and balance sheet management. Pre-IFRS 16 net debt declined to £136.8 million, while operating cash conversion reached 98%. Reflecting the improvement in earnings and financial discipline, Marshalls increased its interim dividend by 13.6%.
Performance benefited from operational improvements and self-help measures being implemented through the group’s Transform & Grow strategy. Landscaping Products recorded an improvement in profitability, supported by a cost-reduction programme that is targeting £11 million of annualised savings by the end of 2026.
Roofing Products remained resilient during the period. Marley Roofing continued to gain market share, while Viridian Solar benefited from demand linked to changing regulatory requirements. Trading within Building Products was more mixed, reflecting continued weakness in the new-build housing market and subdued conditions across parts of the wider construction sector.
Despite the difficult market environment, the board maintained its full-year profit expectations. The outlook assumes there will be no material recovery in underlying markets during the second half, leaving execution of the company’s internal improvement initiatives as an important driver of performance.
Marshalls’ broader outlook benefits from an improving balance sheet and positive share price trend, with the stock trading above key moving averages. However, weaker cash generation during 2025 and relatively thin and variable profitability remain considerations, while overbought technical signals could limit near-term momentum. Valuation also represents a potential headwind due to a high price-to-earnings multiple, although the dividend yield provides some support.
More about Marshalls
Marshalls plc is a UK-based manufacturer of building products and sustainable solutions for the built environment. The group operates through Landscaping Products, Building Products and Roofing Products and maintains a nationwide network of manufacturing and distribution facilities. Its strategy combines product development, technical and design expertise and sustainability initiatives as it seeks to strengthen its position as a leading supplier to the UK built-environment market.
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